How to Keep An Eye on Tariffs
By Barry Victor, owner and president of PROS Parts
As we all face extreme changes in the tariff landscape, PROS wanted to share a few things to consider to help maintain stability with your pricing and business. Tariffs can hit textile-care businesses from multiple angles. In today’s volatile tariff environment, dry cleaning and industrial laundry companies need to be extra strategic. Here’s what they should be watching for and considering:
Tariffs on Imported Textiles and Linens
Many commercial laundries depend on imported linens, uniforms, towels, and specialty fabrics (think flame-resistant or moisture-wicking materials). Tariffs on:
- China (Section 301 tariffs): Affected items may include synthetic textiles, cotton products, and uniforms.
- Other countries: Watch for retaliatory tariffs, or changes due to geopolitical shifts (India, Vietnam, etc.).
What to do:
- Review your supplier countries—consider diversifying sources or reshoring.
- Monitor HTS codes for products you use frequently to check for updated tariff rates.
- Negotiate pricing with vendors who may pass costs downstream.
Equipment and Machinery Costs
Industrial laundry equipment (washers, dryers, folders, boilers) is often imported.
- Tariffs on machinery from countries like Germany, China, or Italy can spike capex.
- Replacement parts and maintenance items can also get pricier.
What to do:
- Lock in long-term supplier agreements where possible.
- Look into U.S.-made options or request forecasts from suppliers.
Chemicals and Cleaning Agents
Tariffs on petrochemicals and surfactants used in laundry detergents and dry cleaning solvents (like perchloroethylene or newer alternatives) can raise your operational costs.
What to do:
- Stay informed through trade associations like TRSA or DLI.
- Work with chemical suppliers to identify tariff-free blends or alternatives.
International Client or Vendor Exposure
If you serve or source from companies abroad (hotels, airlines, hospitals with global suppliers), tariffs might affect your partners—leading to trickle-down effects.
What to do:
- Build contingency plans for disruptions.
- Consider contract clauses to account for sudden cost increases (force majeure, tariff adjustments, etc.).
Pass-through Pricing Strategy
If tariffs spike input costs, you’ll need to decide how much to absorb and how much to pass along to customers (without losing contracts).
What to do:
- Develop flexible pricing models.
- Communicate transparently with clients about cost changes due to external factors.
Long-term Trends and Lobbying
Many industry groups are lobbying for tariff relief or exemptions for key materials. Stay involved or at least stay updated—policy changes can happen quickly in election years.
What to do:
- Subscribe to updates from USTR, CBP, and industry newsletters.
- Consider joining lobbying coalitions if your margins are at stake.
PROS is here to support however we can. Consider stocking up on parts where possible.
Contact us or visit our website.
About Barry Victor
Barry founded PROS Parts in the spring of 1988. Before starting PROS, Barry worked in the sales and engineering departments of Vic Manufacturing, one of the largest manufacturers of dry cleaning equipment in the U.S. At Vic, Barry launched a parts sales division that supported dry cleaning equipment imported from Italy and Germany. In its early years, PROS manufactured dry cleaning machinery and then evolved into an industrial and commercial laundry equipment and drycleaning operations parts supplier. Barry lives in Plymouth, MN with his wife. He has two sons, a stepson, a stepdaughter and his dog, Sora.
Barry can be reached at 763-231-7379 or barryv@prosparts.com.